An Analysis of Artificial Intelligence -Driven Command and Control in Financial Security and Fraud Detection with special reference to Palghar District.

Abstract

With the scalding development of online financial services, the entire financial web in the world has significantly transformed due to the establishment of swifter, comfortable, and highly convenient financial transactions. With the increasing number of financial institutions going online with banking, mobile payment, and fintech solutions, financial institutions are getting massive volumes of digital transactions on a daily basis. However, this technological advancement has equally exposed financial systems to sophisticated cyber fraud and cyber threats of the systems. The traditional rule-based fraud detection system is not quite effective in detecting sophisticated and emerging frauds. In this respect, the Artificial Intelligence (AI) command and control systems proved one of the efficient technologies to promote financial security and provide more chances to detect the fraud. The primary objectives of the study will be to analyze the way of how the AI-based command and control systems can be applied to detect financial fraud and test how the users will perceive it in terms of trust, acceptance, and usefulness. The paper also aims at evaluating the relationship between demographic variables and the degree of trust in financial security systems that are based on AI. The research design applied in the study is descriptive research design and an analytical research design to understand operational efficiency and the image of the user towards the AI-based fraud detection systems. The sample was selected as a structured questionnaire, which was distributed to 250 participants (including clients of banks and fintech users and financial professionals actively using the services of digital financial institutions). The geographical area of the study was limited to the selected city and semi urban locations of the Palghar District Maharashtra like Virar, Vasai and Palghar where the technological element of finances is quite common. The stratified random sampling was used to ensure that different classes of users were represented. The statistical procedures of the research hypotheses were performed through the analysis of the percentage, Chi-square test, and one-sample t-test.